The offer, which closed on March 24, had mopped up bids worth around Rs 4,400 crore against the government’s target of raising Rs 3,000 crore.

According to Goldman Sachs India MF, around 40,000 investors had invested in the ETF, of which many are retail and new investors.

Data available from the National Stock Exchange (NSE) showed that the units of CPSE-ETF debuted at Rs 18 compared to the allotment price of Rs 17.45 per unit.

After hitting a day’s high of Rs 19.43 per unit, it ended at Rs 19.40, a gain of 11.17 per cent. While around 8.35 crore units were traded, the turnover stood at Rs 158.66 crore.

After the encouraging response to CPSE ETF, senior government officials said the Centre might come up with more such exchange traded funds comprising shares of public sector units as part of its divestment programme.

“May in coming times, we will introduce more of such ETF products because the main idea behind launching the CPSE ETF was to do the divestment programme in a manner in which markets are not disrupted. So once having achieved that (purpose), this process can be taken forward,” joint secretary of the department of disinvestment, Alok Tandon, told reporters on the sidelines of the CPSE ETF listing here.

An ETF is a security that tracks an index but trades like a stock on an exchange.

In a bid to attract retail investors to subscribe to the offer, a 5 per cent upfront discount was offered. Moreover, “loyalty units” will also be given to those retail investors holding the units for a period of one year from the NFO allotment date.

Market participants are of the view that CPSE ETF is likely to attract more funds after its reopening and that many of its existing investors are likely to stay on.

Brokers said profit-booking emerged at existing higher levels. Sentiment got dampened by an IMF report that said slowdown in the Indian economy was attributable to “internal factors”, they added.

The Sensex resumed higher at 22522.46 but immediately came in the negative terrain. In choppy trade, it touched the day's low of 22339.40 in late afternoon trade.

Finally, it settled the day at 22359.50, a loss of 149.57 points of 0.66 per cent from its previous close. This is the second straight day the Sensex is registering losses. Snapping the six-day rally, the barometer had slipped 42 points yesterday.

The NSE 50-share Nifty declined by 41.75 points, or 0.62 per cent, to finish at 6694.35.